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Exchange rate misalignments in ASEAN-5 countries

Lee, Chin and Azli, M. and Yusop, Zulkornain and Yusoff, Mohammed (2004) Exchange rate misalignments in ASEAN-5 countries. In: International Borneo Business Conference, 9-11 December 2004, Kota Kinabalu. (Unpublished)

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The purpose of this paper is to estimate the exchange rate misalignments for Indonesia, Malaysia, Philippines, Singapore and Thailand before the currency crisis. By employing the sticky-price monetary exchange rate model in the environment of vector error-correction, the results indicate that the Indonesia rupiah, Malaysian ringgit, Philippines peso and Singapore dollar were overvalued before the currency crisis while Thai baht was undervalued on the eve of the crisis. However, they suffered modest misalignment. Therefore, little evidence of exchange misalignment is found to exist in 1997:2. In particular, Indonesia rupiah, Malaysia ringgit, Philippines peso and Singapore dollar were only overvalued about 1 to 4 percent against US dollar while the Thai baht was only 2 percent undervalued against US dollar.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 4178/30771
Subjects: H Social Sciences > HG Finance > HG3810 Foreign exchange
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User: Professor Mohammed Yusoff
Date Deposited: 19 Jul 2013 11:09
Last Modified: 19 Jul 2013 11:09
URI: http://irep.iium.edu.my/id/eprint/30771

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